SummaryA significant part of overall employment in Jordan is informal, consisting of low-income, unskilled labour; lacking any legal or syndical protection; and characterised by an abundance of migrant workers, especially in sectors such as agriculture, construction, and services. The recent influx of Syrian refugees has aggravated the situation, leading to competition with Jordanian workers in the informal economy, in addition to a decrease in wages. Despite efforts by social partners to tackle these challenges, there is an absence of an overall policy framework and limited national capacities to address these issues in a comprehensive way.
The ILO is working with tripartite partners to build their capacity as well as design and implement a policy framework to pursue an integrated approach towards formalisation in Jordan. Moving towards a formal economy is essential for improving the efficiency of enterprises and the private sector as a whole, reducing the vulnerability of workers, improving working conditions, enhancing skills and productivity, expanding the scope of the social security coverage, increasing worker representation, as well as improving institutional capacities.
- Establish a national framework to address the increasing size of the informal sector in Jordan and structural challenges of weak labour market governance leading to informality;
- ensure that the framework is based on a common understanding and an integrated approach aimed at identifying the right response mechanisms in terms of coordinating and devising means to move towards formalization; and
- help regulate the labour market and the informal sector in a way that ensures decent work, life and social justice for all, and increase productivity and economic growth in the country through the implantation of the national framework.
- A national working group, compromising of officials from the ministry of labour, employer and worker representatives, members of the Social Security Corporation and other stakeholder, is established to formulate and execute the aims of the national framework;
- a National Framework for a Transition to Formal Economy in Jordan is developed in a consultative manner, taking into consideration the different needs and interests of the diverse actors involved;
- a plan by the working group to put the framework into action is developed; and
- technical training to national actors to develop an effective action plan to promote formalisation of employment in Jordan based on the national framework is provided.
- The capacities of constituents to pursue an integrated approach towards formalisation is enhanced;
- a tripartite framework and action plan on the transition to formalization in Jordan is developed; and
- the organization of workers in particular sectors is supported.